Deutsche Bank’s Japanese brokerage unit faces regulatory penalties for the second time in two years after the nation’s securities watchdog found that the firm improperly shared information about a company’s earnings with clients.
Bloomberg News reports that the Securities and Exchange Surveillance Commission recommended that the Financial Services Agency take administrative action against Deutsche Securities, the SESC said in a statement on Tuesday, without specifying the type of penalties sought.
The firm’s governance and compliance processes are weak, the commission said.
Around December 2014, a Deutsche Securities equity research analyst interviewed officials from a publicly traded company and received information on its quarterly earnings before they were announced, the SESC said. The analyst then gave the information to 21 salespeople and a client.
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